Crowdsourcing is a new Web phenomenon, in which a firm takes a function once performed in-house and outsources it to a crowd, usually in the form of an open contest.Designing efficient crowdsourcing mechanisms is not possible without deep understanding of incentives and strategic choices of all participants.This paper presents an empirical analysis of determinants of individual performance in multiple simultaneous crowdsourcing contests using a unique dataset for the world's largest competitive software development portal: TopCoder.com. Special attention is given to studying the effects of the reputation system currently used by TopCoder.com on behavior of contestants. We find that individual specific traits together with the project payment and the number of project requirements are significant predictors of the final project quality. Furthermore, we find significant evidence of strategic behavior of contestants. High rated contestants face tougher competition from their opponents in the competition phase of the contest. In order to soften the competition, they move first in the registration phase of the contest, signing up early for particular projects. Although registration in TopCoder contests is non-binding, it deters entry of opponents in the same contest; our lower bound estimate shows that this strategy generates significant surplus gain to high rated contestants. We conjecture that the reputation + cheap talk mechanism employed by TopCoder has a positive effect on allocative efficiency of simultaneous all-pay contests and should be considered for adoption in other crowdsourcing platforms.

Consider an online ad campaign run by an advertiser. The ad serving companies that handle such campaigns record users ’ behavior that leads to impressions of campaign ads, as well as users ’ responses to such impressions. This is summarized and reported to the advertisers to help them evaluate the performance of their campaigns and make better budget allocation decisions. The most popular reporting statistics are the click-through rate and the conversion rate. While these are indicative of the effectiveness of an ad campaign, the advertisers often seek to understand more sophisticated long-term effects of their ads on the brand awareness and the user behavior that leads to the conversion, thus creating a need for the reporting measures that can capture both the duration and the

There is significant experimental evidence that prediction markets are efficient mechanisms for aggregating information and are more accurate in forecasting events than traditional forecasting methods, such as polls. Interpretation of prediction market prices as probabilities has been extensively studied in the literature. However there is little research on the volatility of prediction market prices. Given that volatility is fundamental in estimating significance of price movements, it is important to have a better understanding of the volatility of the contract prices.

The increasing pervasiveness of the Internet has dramatically changed the way that consumers shop for goods. Consumer-generated product reviews have become a valuable source of information for customers, who read the reviews and decide whether to buy the product based on the information provided. In this paper, we use techniques that decompose the reviews into segments that evaluate the individual characteristics of a product (e.g., image quality and battery life for a digital camera). Then, as a major contribution of this paper, we adapt methods from the econometrics literature, specifically the hedonic regression concept, to estimate: (a) the weight that customers place on each individual product feature, (b) the implicit evaluation score that customers assign to each feature, and (c) how these evaluations affect the revenue for a given product. Towards this goal, we develop a novel hybrid technique combining text mining and econometrics that models consumer product reviews as elements in a tensor product of feature and evaluation spaces. We then impute the quantitative impact of consumer reviews on product demand as a linear functional from this tensor product space. We demonstrate how to use a low-dimension approximation of this functional to significantly reduce the number of model parameters, while still providing good experimental results. We evaluate our technique using a data set from Amazon.com consisting of sales data and the related consumer reviews posted over a 15-month period for 242 products. Our experimental evaluation shows that we can extract actionable business intelligence from the data and better understand the customer preferences and actions. We also show that the textual portion of the reviews can improve product sales prediction compared to a baseline technique that simply relies on numeric data.